The Income Tax Department has imposed two separate penalties totaling Rs 23.07 crore on ACC Ltd, a prominent cement producer now under the ownership of Adani Cement. These penalties pertain to the assessment years 2015-16 and 2018-19 and follow findings of alleged under-reporting and the furnishing of inaccurate particulars of income. ACC, which became a subsidiary of Ambuja Cement and part of the Adani Group in 2022, has expressed its intention to appeal these orders and seek a stay on the penalty demands, asserting that these developments will not impact its financial activities. Notably, the fines stem from operations conducted prior to ACC’s integration into the Adani Group.
For the assessment year 2015-16, the Income Tax Department disallowed expenses totaling Rs 49.25 crore, leading to a penalty of Rs 14.22 crore for “furnishing of inaccurate particulars of income.” This penalty represents 100% of the tax effect related to the disallowed expenses. A separate penalty of Rs 8.85 crore was enforced for the assessment year 2018-19 due to “under-reporting of income.” This penalty followed the disallowance of a claim for expenditure amounting to Rs 12.79 crore, with the penalty set at 200% of the tax effect of the disallowed claim.
ACC confirmed its intent to contest both penalty orders, stating, “The company will be contesting both orders by filing appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines and, in parallel, will seek a stay on the penalty demands raised under the respective orders.” The company further clarified that the recent demands, received on 1 October 2025, are not connected to its current ownership under the Adani Group. Both penalties pertain to activities in the years prior to Adani’s acquisition of Ambuja Cements and ACC Ltd from Switzerland’s Holcim Group in a USD 6.4 billion deal in September 2022. ACC reassured stakeholders that these penalties “will have no impact on financial activity.
According to its latest annual report, ACC reported revenue from operations of Rs 21,762 crore for the financial year 2025, showcasing cement sales volumes of 39 million tonnes. ACC Ltd shares traded at Rs 1,835.25 apiece on the BSE in the afternoon session, reflecting a 0.33% increase from the previous close.
In the regulatory filing, it was noted: “For Financial Year 2014-15 relevant to Assessment Year 2015-16, the I-T department had disallowed certain expenses aggregating to Rs 49.25 crore and consequently alleged such adjustments as furnishing inaccurate particulars of income.” The department subsequently imposed a penalty equivalent to 100% of the tax effect on these disallowances.
Regarding the 2018-19 penalty, the filing elaborated: “disallowed claim for expenditure amounting to Rs 12.79 crore and accordingly alleged under-reporting of income to that extent.” The Income Tax Department clarified: “Consequent to the said disallowance, the Income Tax Department has levied a penalty amounting to Rs 8.85 crore, i.e., 200% of the tax effect of the aforesaid disallowances.”
